TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 1282
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....i) of first proviso to sub-section (5) of section 80G of the IT Act filed on 24.09.2024. ITA No.795/PUN/2025 : 2. Facts of the case, in brief, are, that the assessee is a trust filed its application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act on 24.09.2024. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, a notice was issued by Ld, CIT, Exemption, Pune through ITBA portal on 06.11.2024 requesting the assessee to upload certain information/clarification. In reply to the said notice, the desired information was furnished ....
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....he circular issued by CBDT the time limit to furnish the application was extended up to 30th June 2024. Apart from above it was also submitted that as per the proviso to sub-clause (vi) of clause (ac) of sub-section (1) of section 12A of the IT Act, the PCIT or CIT have been empowered to condone the delay if they consider that there is a reasonable cause for delay in filing the application. The proviso inserted w.e.f. 01-10-2024 is reproduced herewith :- "[Provided that where the application is filed beyond the time allowed in sub-clauses (i) to (vi), the Principal Commissioner or Commissioner may, if he considers that there is a reasonable cause for delay in filing the application, condone such delay and such application shall be deemed ....
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....tion u/s 12A(1)(ac)(vi) of the IT Act was granted upto assessment year 2024-25 and the assessee therefore was required to file the present application at least six months prior to expiry of provisional registration i.e. on or before 30.09.2024. On the other hand, according to Ld. CIT, Exemption, Pune, the provisional registration was granted upto 31.03.2024 and therefore the assessee was required to file above application prior to six months from the expiry of provisional registration i.e. on or before 30.09.2023. In this regard, Ld. AR of the assessee relied on the order passed by the Co-ordinate Bench of this Tribunal in the case of Mitcon Forum for Social Development (supra) wherein under identical facts and similar circumstances, howeve....
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....d under the agreement. Can it be contended with any degree of fairness and justice that in such cases, where there is clearly no understatement of consideration in respect of the transfer and the transaction is perfectly honest and bona fide and, in fact, in fulfilment of a contractual obligation, the asses-see who has sold the property should be liable to pay tax on capital gains which have not accrued or arisen to him. It would indeed be most harsh and inequitable to tax the assessee on income which has neither arisen to him nor is received by him, merely because he has carried out the contractual obligation undertaken by him. It is difficult to conceive of any rational reason why the Legislature should have thought it fit to impose liabi....
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....tation of a statutory provision produces a manifestly absurd and unjust result which could never have been intended by the Legislature, the Court may modify the language used by the Legislature or even 'do some violence" to it, so as to achieve the obvious intention of the Legislature and produce a rational construction -" Unquote. 11.1 Thus, as observed by the Hon'ble Supreme Court, that the statutory provision shall be interpreted in such a way to avoid absurdity. In this case to avoid the absurdity as discussed by us in earlier paragraph, we are of the opinion that the words, "within six months of commencement of its activities" has to be interpreted that it applies for those trusts/institutions which have not started charitable a....
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....mpowered to condone the delay if they find that there was reasonable cause in not filing the application within the prescribed time limit, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and remand the matter back to his file with a direction to treat the application as filed within time and decide the issue afresh as per fact and law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and produce relevant documents/evidences, if any, in support of application for registration u/s 12A(1)(ac)(iii) of the IT Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exem....